Chile and Argentina Each Produce Jellybeans and Peanut Butter, Using

Multiple Choice

Chile and Argentina each produce jellybeans and peanut butter, using labor as their only resource. Each country has 1,000 hours of labor. In Chile, an hour produces a pound of jellybeans and 2 hours produce a pound of peanut butter. In Argentina, an hour produces a pound of jellybeans and 3 hours produces a pound of peanut butter. When they do not trade with each other, Chile consumes 600 pounds of jellybeans and 200 pounds of peanut butter, and Argentina consumes 400 pounds of jellybeans and 200 pounds of peanut butter. What is the opportunity cost of a pound of peanut butter in Chile?

A) 2 pounds of jellybeans
B) 3 pounds of jellybeans
C) 1/3 pound of jellybeans
D) 1/2 pound of jellybeans